N.C. judge hears software sweepstakes case

Published: Monday, February 4, 2013 at 03:45 PM.

LEXINGTON — A judge in Davidson County is listening to a request to dismiss a lawsuit against Gov. Pat McCrory and another North Carolina official by an Internet sweepstakes business.

International Internet Technologies contends it is using software in its games that comply with state law.

The North Carolina Supreme Court ruled in December that state law bans sweepstakes machines.

But IIT and the operator of the Hickory Tree Business Center in Midway sued last month saying the machines at the business comply with state law.

Attorneys representing sweepstakes stakeholders and law enforcement agencies from across the state filled a Davidson County courtroom Monday. Superior Court Judge Robert F. Johnson heard arguments on a preliminary injunction only involving McCrory and Davidson County Sheriff David Grice.

Winston-Salem attorneys Michael Grace and Christopher Clifton, representing IIT and the business center, asked the judge to grant an injunction until a declaratory judgment can be made on the new software.

"IIT is not asking the court to tie the hands of the sheriff, but everyone that can fill out a citation or bring an indictment," Clifton said.

"We are asking for the court to look at our system and determine if an entertaining display is used to see the outcome of a sweepstakes," he said.

Special Deputy Attorneys General Hal Askins and David Adinolfi argued that the original complaint did not name people who have been prosecuted or threatened with prosecution. They said the law is enforceable against "persons" who place machines into operation.

"No one has stopped them from what they do — they make software," Adinolfi said. "However, any person who puts such software into operation can be prosecuted."

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LEXINGTON — A judge in Davidson County is listening to a request to dismiss a lawsuit against Gov. Pat McCrory and another North Carolina official by an Internet sweepstakes business.

International Internet Technologies contends it is using software in its games that comply with state law.

The North Carolina Supreme Court ruled in December that state law bans sweepstakes machines.

But IIT and the operator of the Hickory Tree Business Center in Midway sued last month saying the machines at the business comply with state law.

Attorneys representing sweepstakes stakeholders and law enforcement agencies from across the state filled a Davidson County courtroom Monday. Superior Court Judge Robert F. Johnson heard arguments on a preliminary injunction only involving McCrory and Davidson County Sheriff David Grice.

Winston-Salem attorneys Michael Grace and Christopher Clifton, representing IIT and the business center, asked the judge to grant an injunction until a declaratory judgment can be made on the new software.

"IIT is not asking the court to tie the hands of the sheriff, but everyone that can fill out a citation or bring an indictment," Clifton said.

"We are asking for the court to look at our system and determine if an entertaining display is used to see the outcome of a sweepstakes," he said.

Special Deputy Attorneys General Hal Askins and David Adinolfi argued that the original complaint did not name people who have been prosecuted or threatened with prosecution. They said the law is enforceable against "persons" who place machines into operation.

"No one has stopped them from what they do — they make software," Adinolfi said. "However, any person who puts such software into operation can be prosecuted."